May 16, 2006
Is your homeowners insurance is adequate?
The Texas Department of Insurance has issued a warning to all Gulf Coast dwellers to check their homeowners insurance. So how do you ensure that your home or business is adequately protected? Here are a few tips and pointers to help you know if your insurance policy is alright.
- Review: The first thing you need to do is review your coverage and policy limits. Ensure that your coverage or insurance is active and that it provides adequate coverage to pay for the full replacement of any lost or damaged property.
- Understand: You are not supposed to be a know-it-all. There are possibly terms in your insurance policy that you don’t understand. Don’t hesitate to ask your agent or insurance company. It is imperative that you understand what your policy covers and does not cover.
- Renew: In case you have made any additions or improvements to your home since you last took your policy, you must try to increase your policy limits to cover the enhanced value of the property. Even if you haven’t made any adjustments or improvements, you must realize that property values increase over time and you must ensure that your insurance policy is adjusted accordingly.
- Flood: Find out if you need flood insurance. Your homeowners policy does not include coverage for damage from flooding. So if you want to protect yourself from losses due to flooding, you must take a separate flood insurance policy. You can get that from the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency. For more information, call NFIP at 1-888-FLOOD 29 (356-6329).
- Windstorm: If you live in one of Texas’ 14 coastal counties, or parts of Harris County, you may require insurance for windstorm or hail damage from the Texas Windstorm Insurance Association.
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